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WASHINGTON, D.C.--May 5, 2025--The National Bankers Association (NBA) is deeply concerned by the White House’s proposal to eliminate all appropriated funding for the Community Development Financial Institutions (CDFI) Fund in the FY 2026 Budget. 

This proposal, while not unexpected, represents a serious threat to the mission and operations of CDFIs and other mission-driven banks across the country. For decades, the CDFI Fund has served as a cornerstone of investment in communities that are too often overlooked by traditional financial systems. The Fund is a powerful, bipartisan tool that leverages private capital to reach small businesses, first-time homebuyers, and historically underserved communities. 

When paired with private investment, CDFI Fund grants generate outsized returns—both economically and socially. These investments directly support job creation, entrepreneurship, affordable housing, and community development in rural towns, urban neighborhoods, and persistent poverty counties alike. As we’ve seen during the pandemic and economic recovery, MDIs and CDFIs have proven to be some of the most effective partners in delivering capital where it’s needed most. 

The proposal to eliminate this funding contradicts the goal of growing our economy by leaving behind the very institutions that have proven most capable of reaching Main Street. At a time when communities are facing rising costs, tight credit markets, and widening inequality, we urge the Administration and Congress to expand—not reduce—support for the CDFI Fund and the banks that serve as engines of local economic growth. 

“The CDFI Fund is not a partisan program—it’s a proven solution,” said Nicole Elam, President and CEO of the National Bankers Association. “Mission-driven banks are on the frontlines of lending in communities that others don’t reach. Eliminating this funding would not only stall progress, it would reverse it. We urge the Administration to recognize the economic value and national impact of the CDFI Fund and work with Congress to maintain and grow these critical investments in our economy.” 

The National Bankers Association stands ready to work with policymakers on both sides of the aisle to protect and strengthen the institutions that make inclusive economic growth possible.